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Texas Tax Deed Sales: How to Bid the First-Tuesday Sales

The Texas format: a deed sale with a priced exit

Texas does not sell lien certificates. Under Tax Code Chapters 33 and 34, delinquent property is sold by the sheriff or constable, and the winning bidder receives a deed immediately — but the deed is defeasible during the redemption period. Think of the purchase as two investments stapled together: a short-term, statute-priced loan to the former owner (the premium), stapled to a discounted property acquisition (what happens if the window closes). Both have to work on the same bid.

Sales run on the first Tuesday of every month, in counties that have delinquencies ready. Most sales are still in person on courthouse steps; a growing minority run online through county portals (RealAuction, GovEase, MVBA and Linebarger county portals appear in our dataset) — the platform is county-specific, so verify your county's format from its published sale notice, not from habit.

The redemption math, worked

The premium is flat, not annual interest, and it applies to the aggregate: your bid plus the deed fee plus any taxes, penalties, interest and costs you pay. It is 25% in the first year — owed even if the owner redeems on the first day — and 50% in the second year for homestead, agricultural and mineral property (other property is capped at 25% and usually ends at its 180-day window).

Worked example, using those dataset numbers only: you win a non-homestead parcel with a $12,000 all-in aggregate. If the owner redeems at month five, they owe you $12,000 × 1.25 = $15,000 — a $3,000 premium on a five-month hold. If instead it were a residence homestead and the owner redeems in month 18, the year-two rate applies: $12,000 × 1.50 = $18,000. And if the window closes with no redemption, you own the property for your $12,000 plus title work. Notice what premium bidding does NOT do: bidding above the minimum (taxes plus costs) raises your basis but does not change the premium percentage — the percentage is fixed by §34.21.

Sale-day walkthrough

Before the sale: pull the county's published sale list, confirm each target's minimum bid (taxes plus costs), property type, and — critically — its redemption class, because 180-day property and two-year property are different investments wearing the same auction clothes. Check the property appraiser/central appraisal district records for value and type, and screen imagery. Decide in advance which outcome you're underwriting for each parcel.

At the sale: register as the county requires, bid your list to your written max, and log every result including parcels you lose. After a win: record the deed promptly (the two-year clock runs from the date the deed is filed for record), do not improve or encumber the property during redemption in ways the premium math doesn't cover, and calendar the redemption expiry. If the owner redeems, you collect your aggregate plus premium through the county. If not, start the quiet-title conversation — a Texas tax deed typically needs one before a title company will insure your resale.

Struck-off property: Texas's OTC shelf

Parcels that draw no bid are struck off to the taxing units and can be resold later through the county's struck-off process — the Texas version of the over-the-counter shelf. The research advantage is time: struck-off lists can be worked parcel by parcel between sale days. The underwriting doesn't change (both outcomes must still pay), and the redemption class still controls the timeline. Verify availability and resale mechanics with the specific county, because struck-off handling is county-administered.

What to verify with the county before you bid

Confirm, from the county or its sale notice: the sale format (courthouse steps or a named online portal) and registration requirements; each parcel's minimum bid and property classification (homestead/ag/mineral versus other, which sets the 180-day versus two-year clock); whether the parcel has been pulled or redeemed since the list published; and the deed-recording process after payment. Texas sales move fast and monthly — LienToDeed watches the published lists so the first-Tuesday deadline never sneaks up on your research.

Questions

When are Texas tax sales held?
Sheriff/constable sales run on the first Tuesday of every month in counties with delinquent property ready for sale, under Texas Tax Code Chapters 33–34.

How does the Texas redemption premium work?
25% of your aggregate cost in year one, 50% in year two for homestead, agricultural and mineral property (§34.21). The premium is flat — it applies even if redemption happens on day one — and overbidding does not raise the percentage.

How long does the Texas owner have to redeem?
Two years from the date the purchaser's deed is filed for record for residence homestead, agricultural and mineral property; 180 days for all other property.

Are Texas tax sales online?
Mostly in person on courthouse steps, with a growing minority online via county-specific portals (RealAuction, GovEase, MVBA, Linebarger). Check your county's sale notice for its format.